partnership and agency digests compilation

8/20/2019 Partnership and Agency Digests Compilation

1/28

PARTNERSHIP Digests Atty. CochingyanTAN SEN GUAN & CO. VS. PHILIPPINE TRUST

CO.

Facts: Plaintif Tan Sen Guan & Co. secured a judgment or a sum o P21,426 against te !indoroSugar Co. o "ic te Pili##ine Trust is te trustee.

Te #laintif entered into an agreement "it tedeendant Pili##ine Trust Co. "erein te ormerassigned, transerred, and sold to te latter te ullamount o said judgment against !indoro Sugar Co.

togeter "it all its rigts tereto and te latterofered satisactor$ consideration tereto. Teagreement urter sti#ulated tat u#on signing o teagreement, Pil Trust sall #a$ Tan Sen te sum oP%' sould te !indoro Sugar (e sold or itso"nersi# (e transerred, an additional P1,#esos "ill (e #aid to Tan Sen u#on #erection o tesale' in case an$ oter creditor o !indoro Sugaro(tains in te #a$ment o is credit a greater#ro#ortion tan te #rice #aid to Tan Sen, te Pil

Trust sall #a$ to te latter "ate)er sum ma$ (enecessar$ to (e #ro#ortioned te claim o tecreditor. *o"e)er, i te !indoro Sugar is sold to an$#erson "o does not #a$ an$ting to te creditors or#a$ tem e+ual or less tan #ercent o teirclaim, or sould te creditors o(tain rom otersources te #a$ment o teir claim e+ual to or lesstan #ercent, te Pil Trust "ill onl$ #a$ to TanSente additional sum o P1, u#on te sale ortranser o te !indoro Sugar as a(o)e stated. Te#ro#erties o !indoro Sugar "ere later on sold at#u(lic auction to te -oman Catolic rc(iso# o!anila and (ase on te agreement #laintif Tan Sen(rougt suit against deendant Pil Trust or te sumo P1,.

Deen!ant"s a#g$%ent: /nl$ a #ortion o te!indoro Sugar0s #ro#erties "ere sold.

CFI: (sol)ed te deendant on t"o grounds: a inte contract, it "as onl$ (ound as a trustee and notas an indi)idual' ( tat it as not (een #ro)ed tatall te #ro#erties o te !indoro Sugar ad (een

sold.

Iss$es

1 35 te deendant is not #ersonall$res#onsi(le or te claim o te #laintif(ased on te deed o assignment (ecauseo a)ing eecuted te same in its ca#acit$as trustee o te #ro#erties o te !indoroSugar.

2 35 all te #ro#erties o te !indoro Sugar"ere sold at #u(lic auction to te -omanCatolic rc(iso# o !anila.

He'!: SC re)ersed C780s ruling.

1 Te Pil Trust Com#an$ in its indi)idual ca#acit$is res#onsi(le or te contract as tere "as noe#ress sti#ulation tat te trust estate and notte trustee sould (e eld lia(le on te contractin +uestion. 5ot onl$ is tere no e#resssti#ulation tat te trustee sould not (e eldres#onsi(le (ut te 93ereore0 clause o tecontract states te judgment "as e#ressl$assigned in a)or o Pil Trust Com#an$ and notPil Trust Com#an$, te trustee. 8t tereoreollo"s tat a##ellant ad a rigt to #roceeddirectl$ against te Pil Trust on its contract and

as no claim against eiter !indoro Sugar or tetrust estate.

2 i(it ; te certi


2/28

PARTNERSHIP Digests Atty. Cochingyan1 35 te #laintif is not te real #art$ in

interest res#ecting te claim or P12,.

He'!: SC aArmed te a##ealed judgment.

1 8n tis jurisdiction, "e a)e our o"n legal#ro)ision "ic in su(stance difers rom temerican la". rt. 22 o te 5CC #ro)idestat i a #ro#ert$ is insured and te o"ner

recei)es te indemnit$ rom te insurer tesame is deemed su(rogated to te rigts ote insured against te "rongdoer and i teamount #aid ($ te insurer does not ull$co)er te loss, ten te aggrie)ed #art$ is teone entitled to reco)er te dee#t secret rom #ianio Gome@, andtat, a)ing no >no"ledge o it, e could not a)eacce#ted it (eore te sti#ulation "as re)o>ed. ndtat e as te (ene


3/28

PARTNERSHIP Digests Atty. Cochingyan

SALAO VS. SALAO

7acts: ter te deat o Ialentina 8gnacio, er estate"as administered ($ er daugter m(rosia. 8t "as#artitioned etrajudicall$ and te deed "as signed ($er our legal eirs namel$ er cildren lejandra,

Juan, and m(rosia and Ialentin Salao, inre#resentation o is deceased ater, Patricio. Te

Calunuran e. Tis is not a case "ere tosatis$ te demands o justice it isnecessar$ to consider te Calunuran


4/28

PARTNERSHIP Digests Atty. CochingyanDeen!ant"s a#g$%ent: 7iled a motion to dismiss.

Te #laintifs0 cause o action is (arred ($ te statuteo limitations (ecause te deed o assignment "asrecorded in te -egistr$ o Pro#ert$ and tato"nersi# o)er te #ro#ert$ (ecame )ested in im($ ac+uisiti)e #rescri#tion ten $ears rom itsregistration in is name o 7e(. 21, 1L4.

RTC"s #$'ing: -uled in a)or o deendant !aiminoCarantes stating tat since an action (ased on raud

#rescri(es in our $ears rom te disco)er$ o teraud, and in tis case te raud allegedl$#er#etrated ($ deendant must deemed to a)e(een disco)ered on marc 16, 1L4 "en te deedo assignment "as registered, te #laintif0s rigt oaction ad alread$ #rescri(ed "en te$ e,suc #erson is ($ o#eration o la" considered atrustee o an im#lied trust or te (ene


5/28

PARTNERSHIP Digests Atty. Cochingyane+uit$ (ound to recon)e$ te su(ject land to tecestui que trust , te !unici#alit$ o Iictorias.

)ARIANO VS. DE VEGA

Facts S#ouses Dr(ano and Pangani(an o"ned asconjugal #ro#ert$ 2L unregistered #arcels o landduring teir lietime. 3en Dr(ano died, is

com#ulsor$ eirs "ere te cildren o Gaudencia, iscild "it Pangani(an, "o are #etitioners in tiscase, and t"o oter legitimate cildren, is cildren"it is second "ie, "o are te #ri)ateres#ondents in tis case.

Petitioners ing#ossession o te "ole conjugal #ro#ert$ and tatte latter a##ro#riated to temsel)es te #roductscoming rom te #arcels o land. Te court ruled ina)or o te #ri)ate res#ondents claiming tat teaction o te #etitioners as alread$ #rescri(ed orte reason tat an im#lied or constructi)e trust

#rescri(es in ten $ears.

Iss$e 35 tere is an im#lied or constructi)e trustgranted ($ te #etitioners in a)or o teres#ondents. 5o.

He'! Te Court ruled tat te #resent case does notall under te rules o im#lied trust. Considering teact tat te #arties in tis case inerited te landrom te same ancestor, Dr(ano, (ot #arties areclearl$ coHo"ners o te dis#uted #ro#erties. Tiscase is tereore go)erned ($ te rules on coHo"nersi#. Dnder te ci)il code, #rescri#tion doesnot run against a coHo"ner or a coHeir so long as ee#ressl$ or im#liedl$ recogni@es te coHo"nersi#.

8n )ie" o teir lac> o a clear re#udiation o te coHo"nersi#, #ri)ate res#ondents cannotac+uire te sare o te #etitioners ($ #rescri#tion.

HEIRS OF CANDELARIA VS. RO)ERO

Facts Parties to tis case are te eirs o milioCandelaria as #laintif and =uisa -omero, and teeirs o =ucas as deendants.

milio and =ucas Candelaria (ougt a lot onan installment (asis. =ucas #aid te ind o trust "as createdO #ress orim#lied trustO 8m#lied trust.

He'! 3ere te grantee ta>es te #ro#ert$ underan agreement to con)e$ to anoter on certainconditions, a trust results or te (eneno"ledging te #resence o trust, te #laintif0saction cannot (e said to a)e (een (arred ($ la#seo time. Te case is tereore remanded or urter#roceedings.

LAUREANO VS. STEVENSON

Facts 8n 1L12, 7eli =aureano sold to ugenioila$co a #iece o #ro#ert$ situated in te Cit$ o 8loilo, and suc land "as ten registered in te

latter0s name. djoining suc #ro#ert$ "as anoter#ro#ert$ (elonging to =aureano.

3en te cadastral sur)e$ "as initiated in 8loilo in1L14, ila$co made #ro#er re#resentations toconno"n noting o it.

/n June 1L22, =aureano


6/28

PARTNERSHIP Digests Atty. CochingyanIss$e 3en #ro#ert$ is ac+uired troug mista>e,can te real o"ner reco)er suc #ro#ert$ ($ )irtue o im#lied trustO

T#ia' Co$#t Since te creditors "ere not #arties tote action, te cancellation o te annotations on tecertienl$ registered in te name o ila$co' and

. Te court did not a)e jurisdiction tocononed rom te issuance o te ad)ersetitle to te #ro#ert$ "ic o#erates as a constructi)enotice.

Te assertion o ad)erse title, "ic "as an e#licitindication o re#udiation o te trust or te #ur#oseo te statute o limitations, too> #lace "en te /CT"as issued in te name o 7austo So$ in 1L2, to teeclusion o is sisters.

)en i tere "ere no re#udiation, te rule is tat anaction to enorce an im#lied trust ma$ (ecircumscri(ed not onl$ ($ #rescri#tion (ut also ($lacesRin "ic case, re#udiation is not re+uired.

-es#ondents ad literall$ sle#t on teir rigts#resuming te$ ad an$ and can no longer dis#ute

te conclusi)e and incontro)erti(le caracter o7austo0s title as te$ are deemed to a)e ac+uiescedterein.

ADA3A V. CA

Facts: 8n 1L%, Iictor da@a Sr. eecuted a ;eed o;onation, co)ering te dis#uted land in tis case,located in Sinono>, am(oanga del 5orte in a)or o-es#ondent Iioleta. Te land (eing dis#osa(le #u(licland ad (een eld and culti)ated ($ Iictor, Sr. 3itte el# o er (roter, *oracio, Iioleta


7/28

PARTNERSHIP Digests Atty. Cochingyanomestead a##lication o)er te land and a ree#atent "as issued in 1L%6. n /CT "as issued in1L6. 8n 1L62, Iioleta and us(and, =ino o(tained aloan rom P5E ($ eecuting a mortgage on te land,"ile *omero da@a, (roter o Iioleta remainedadministrator o te same.

8n 1L1, *oracio in)ited is (roters and sisters or aamil$ gatering "ere e as>ed Iioleta to sign a;eed o 3ai)er "it res#ect to te #ro#ert$ in

Sinono>. Te ;eed stated tat te land "as o"ned incommon ($ Iioleta and *oracio e)en toug te/CT "as in er name onl$. Te ;eed also #ro)idedor te "ai)er, transer and con)e$ance o Iioleta to*oracio o o te #ro#ert$ and its im#ro)ements.Iioleta and *oracio signed te ;eed "it *omero asa "itness.

e" monts later, Iioleta and us(and =ino ,altoug its issuance is attended "it raud.*o"e)er, an action or recon)e$ance is still a)aila(leor te aggrie)ed #art$ i te #ro#ert$ as not $et#assed to an innocent #urcaser or )alue. Tis iseactl$ "at #laintif as done.

Plaintif as not (een a(le to #ro)e raud andmisre#resentation (ecause o te trial courtdismissal. 3ile #laintif is not te Mo"nerN o teland, so tat, strictl$ s#ea>ing, e as no #ersonalit$

to es te doctrine o im#lied trust under A#t. 9:;<o te Ci)il Code: If property is acquired throughmistake or fraud, the person obtaining it is, by forceof law, considered a trustee of an implied trust forthe benet of the person from whom the propertycomes.

Te doctrine o im#lied trust ma$ (e made too#erate in #laintif0s a)or, assuming tat e can#ro)e is allegation tat deendant ad ac+uiredlegal title ($ raud.

constructi)e trust is a trust raised ($ constructiono la" or arising ($ o#eration o la". 8 a #erson

Pa#tne#shi, & Agency - * //01//2


8/28

PARTNERSHIP Digests Atty. Cochingyano(tains legal title to #ro#ert$ ($ raud orconcealment, courts o e+uit$ "ill im#ress u#on tetitle a soHcalled constructi)e trust in a)or o tederauded #art.

ction or recon)e$ance as not #rescri(edRte#rescri#ti)e #eriod (eing 1 $ears. Title o(tained1L62, Suit commenced 1L6

Case is remanded to C78 Coto(ato.

RA)OS 5 RA)OS

Facts: S#ouses !artin -amos and Candida "eresur)i)ed ($ tree legitimate cildren: Jose, gustinand Granada. !artin "as also sur)i)ed ($ naturalcildren. s#ecial #roceeding "as instituted or tesettlement o te estate o said s#ouses. -aael,(roter o !artin "as a##ointed administrator. #roject o #artition "as su(mitted and te conjugalereditar$ estate "as a##raised at P4,LB4.L. 8tconsisted o 1B #arcels o land, some ead cattle andad)ances to te legitimate cildren. 8t "as agreed inte #roject o #artition tat Jose and gustin "ould

#a$ te cas adjudications to teir natural si(lings./nl$ te sum o P , 4L2.46 o te P4>re#resented te estate o !artin. 1 tereo "as teree #ortion out o "ic te sares o te naturalcildren "ere to (e ta>en: eac "ould get P1,B%.%.

Te #roject o #artition as "ell as te inter)ention o Timoteo as guardian o te


9/28

PARTNERSHIP Digests Atty. Cochingyanrejected tererom and teir ouses demolised in1L4 troug a "rit o eecution. 8n 1L14, tedeendants Tuason ad o(tained a decree o registration co)ering %,4 ectares and tat te$ad raudulentl$ and insidiousl$ included #laintif0sland in te area co)ered ($ te Certie and alse tecnical descri#tions. DPet al. as su(se+uent ac+uirers "ose titles arederi)ed rom te original raudulent certie"ise (e annulled.

*erein Petitioners contend tat te decision in a ci)ilcase "erein te -es#ondents "ere declared as"itout title to te land and ejected ($ a "rit o eecution "as aArmed ($ te Su#reme Court. TePetitioners contend in te #resent case tat tecauses o action a)erred ($ te -es#ondents "ere(arred ($ te =- and te statute o limitations o)er%1 $ears a)ing ela#sed since te decree o registration "as issued, (arred ($ laces as 2 $earsa)e ela#sed since te ejectment and tat te courtad no jurisdiction to re)ie" and re)ise te decree o registration. Te$ also maintain as aArmati)edeenses tat te$ ad in #ossession or o)er $ears o te land tus ac+uiring title ($ ac+uisiti)e#rescri#tion and tat claims or o"nersi# "ereetinguised ($ te decree and tat te$ are#urcasers or )alue and in good ait o te landsstanding in teir names. motion to dismiss "asno"ing tat #etitioners "ere alsois orced eirs. Te$ "ere a(le to cause te transerte certi to annul te etraHjudicial settlement as "ell asa)e teir sares in te said #ro#erties recon)e$edto tem.

Contentions ;eendants argue tat Placida deGu@man "as not entitled to sare in te estate o!arcelo as se "as an illegitimate cild and tat teaction o te Petitioners is (arred ($ te statute olimitations.

R$'ings

TRIAL COURT: Te trial court dismissed te caseater


10/28

PARTNERSHIP Digests Atty. Cochingyan8gnacio Gerona as "ell as !aria Conce#cion attainedte age o majortit$ in 1L4B tus ad 4 $ears romdate o disco)er$ "itin "ic to ad)antage o te error o te #ro)incial$e#+uestion and o(tained title in ersel, te actiono te #laintif "as, o"e)er, (arred ($ laces and#rescri#tion.

Petitione#s Te dis#uted #ro#ert$ "as ac+uired ($Gorrico troug an error o te #ro)incial serif'tat a)ing (een ac+uired troug error, it "assu(ject to an im#lied trust, as #ro)ided ($ rticle14%6 o te 5e" Ci)il Code' and tereore, since tetrust is continuing and su(sisting, te a##ellants ma$com#el recon)e$ance o te #ro#ert$ des#ite tela#se o time, s#eciall$ (ecause #rescri#tion does notrun against titles registered under rticle 4L6.

He'! Te #etitioners are in error in (elie)ing tatli>e e#ress trusts, suc constructi)e trusts ma$ not(e (arred ($ la#se o time. Te merican la" on



11/28

PARTNERSHIP Digests Atty. Cochingyantrusts as al"a$s maintained a distinction (et"eene#ress trusts created ($ intention o #arties, andte im#liedconstructi)e trusts tat are eclusi)el$created ($ la", te later not (eing trusts in teirtecnical sense. The e>,#ess t#$sts !isa8'e thet#$stee #o% acB$i#ing o# his o@n 8enet the,#o,e#ty co%%itte! to his %anage%ent o#c$sto!y( at 'east @hi'e he !oes not o,en'y#e,$!iate the t#$st( an! %aes s$ch#e,$!iation no@n to the 8enecia#y o# cestui

que trust.

lso, in e#ress trusts, te !e'ay o the 8enecia#yis !i#ect'y att#i8$ta8'e to the t#$stee @ho$n!e#taes to ho'! the ,#o,e#ty o# the o#%e#(o# @ho is 'ine! to the 8enecia#y 8ycon!entia' o# !$cia#y #e'ations. Te trustee0s#ossession is, tereore, not ad)erse to te(eneing remedial action in 1L%2. Dnder te oldCode o Ci)il Procedure, in orce at te time, telongest #eriod o etincti)e #rescri#tion "as onl$ 1$ears.

EVANGELISTA( ET. AL. VS. COLLECTOR OFINTERNAL REVENUE( ET. AL.

Facts Te #etitioners (orro"ed rom teir aterPP%L,14. "ic amount togeter "it teir#ersonal monies "as used ($ tem or te #ur#oseo (u$ing and selling real #ro#erties. 7rom 1L4 to1L44, te$ (ougt 24 #arcels o land including teim#ro)ements tereon on our diferent occasions.8n 1L4%, te$ a##ointed teir (roter Simeon tomanage teir #ro#erties "it ull #o"er to lease' tocollect and recei)e rents' to issue recei#ts tereore'in deault o suc #a$ment, to (ring suits against tedeaulting tenant' and to endorse and de#osit allnotes and cec>s or tem. 8n 1L4B, teir net rentalincome amounted to PP12,61%.%.

/n Se#tem(er 1L%4, te res#ondent Collector o 8nternal -e)enue demanded te #a$ment o 1income ta on cor#orations, 2 real estate dealer0sno"n as te5ational 8nternal -e)enue Code. ccording to Sec.B4 o te same statute, Mte term 9cor#oration0includes #artnersi#s, no matter o" created ororgani@ed, jointHstoc> com#anies, joint accounts,associations or insurance com#anies, (ut does notinclude dul$ registered general coH#artnersi#s.N

lso, rticle 16 o te Ci)il Code #ro)ides:ME$ te contract o #artnersi#, t"o or more #ersons

(ind temsel)es to contri(ute mone$, #ro#ert$, orindustr$ to a common und, "it te intention o di)iding te #ro


12/28

PARTNERSHIP Digests Atty. CochingyanMcor#orationN and M#artnersi#N are used in(ot statutes "it su(stantiall$ te samemeaning. Conse+uentl$, #etitioners aresu(ject, also, to te residence ta orcor#orations.

88. =astl$, te records so" tat te #etitionersa)e a(ituall$ engaged in leasing te#ro#erties or a #eriod o 12 $ears, and tatte $earl$ gross rentals o te said

#ro#erties rom 1L4% to 1L4B ranged romPPL,%LL. to PP 1,4%.. Tus, te$are su(ject to te ta #ro)ided in Section1L + o our 5ational 8nternal -e)enueCode, or Mreal estate dealers,N inasmuc as,#ursuant to Section 1L4 s tereo:

M-eal estate dealers include an$ #erson engagedin te (usiness o (u$ing, selling, ecanging,leasing, or renting #ro#ert$ o is o"n account as#rinci#al and olding imsel out as ull ro #artHtimedealer in real estate or as an o"ner o rental #ro#ert$or #ro#erties rented or ofered to rent or anaggregate amount o tree tousand #esos or more a$ear. V V VN

4ULO V. 4ANG CHIAO SENG

Facts Fang Ciao Seng #ro#osed to orm a#artnersi# "it -osario Fulo to run and o#erate ateatre on te #remises occu#ied ($ Cine /ro, Pla@aSta. Cru@, !anila, te #rinci#al conditions o te ofer(eing 1 Fang guarantees Fulo a montl$#artici#ation o P, 2 #artnersi# sall (e or a#eriod o 2 $ears and 6 monts "it te conditiontat i te land is e#ro#riated, renderedim#ractica(le or (usiness, o"ner constructs a#ermanent (uilding, ten Fulo0s rigt to lease and#artnersi# e)en i #eriod agreed u#on as not $ete#ired' Fulo is autori@ed to #ersonall$ conduct(usiness in te lo(($ o te (uilding' and 4 ater;ec 1, 1L4, all im#ro)ements #laced ($#artnersi# sall (elong to Fulo (ut i #artnersi# isterminated (eore la#se o 1 and $ears, Fang salla)e rigt to remo)e im#ro)ements. Partiesesta(lised, MFang and Co. =td.N, to eist rom Jul$ 1,1L4% K ;ec 1, 1L4.

8n June 1L46, te$ eecuted a su##lementar$agreement etending te #artnersi# or $ears(eginning Jan 1, 1L4B to ;ec 1, 1L%.

Te land on "ic te teater "as constructed "asleased ($ Fulo rom o"ners, milia Carrion and !ariaCarrion Santa !arina or an inde


13/28

PARTNERSHIP Digests Atty. Cochingyanreiterated tat te P1%,. ad)ance rental sall(e de#osited "it S*== to co)er ad)ances o uel to#etitioner as dealer "it a #ro)iso tat saidagreement Mcancels and su#ersedes te JointAda)it.N

7or sometime, te #etitioner su(mitted s o P1%,. ad)ance rentalstarting !a$ 2%, 1L66 "ile te latter agreement

also reers to ad)ance rentals o te same amountstarting !a$ 24, 1L66. Tere is tereore adu#lication o reerence to te P1%,. ence teneed to #ro)ide in te su(se+uent document tat itMcancels and su#ercedesN te #re)ious none.8ndeed, it is true tat te latter document is silent asto te statement in te Join Ada)it tat te )aluere#resents te Mca#ital in)estmentN o te #arties inte (usiness and it s#ea>s o te #etitioner as tesole dealer, (ut tis is as it sould (e or in te latterdocument, S*== "as a signator$ and it "ould (eagainst teir #olic$ i in te agreement it sould (estated tat te (usiness is a #artnersi# "it #ri)ate

res#ondents and not a sole #ro#rietorsi# o te#etitioner.

7urtermore, tere are oter e)idences in te record"ic so" tat tere "as in act suc #artnersi#agreement (et"een #arties. Te #etitionersu(mitted to te #ri)ate res#ondents #eriodicaccounting o te (usiness and ga)e a "rittenautorit$ to te #ri)ate res#ondent -emediosstanislao to eamine and audit te (oo>s o teir

Mcommon (usinessN aming negos$o. Teres#ondent -emedios, on te oter and, assisted inte running o te (usiness. 8ndeed, te #artiesereto ormed a #artnersi# "en te$ (oundtemsel)es to contri(ute mone$ in a common und"it te intention o di)iding te #ro


14/28

PARTNERSHIP Digests Atty. Cochingyan• 5o local custom #roi(its te continued use o

a deceased #artner0s name in a #roessional


15/28

PARTNERSHIP Digests Atty. CochingyanIss$e 8s te relationsi# (et"een te #etitioner and!en@i tat o #artnersO

He'! Te relationsi# esta(lised (et"een te#arties "as not tat o #artners, (ut tat o em#lo$erand em#lo$ee, "ere($ te #laintif "as to recei)e%X o te net #ro


16/28

PARTNERSHIP Digests Atty. Cochingyan#a$ment. *o"e)er in order to o(tain te loan e adto gi)e a #ersonal note signed ($ imsel, ($ isoter associates and ($ te 7idelit$ and Suret$Com#an$. Ten again, in order to o(tain tesignature o te 7idelit$ and Suret$ Com#an$ lserad to eecute a mortgage on one o te #ro#ertieso"ned ($ im and =$ons on Carriedo Street.

=$ons re#lied to te letter o lser onl$ in Jul$ 1L2 and e e#ressed in it is un"illingness to

join te latter in tis )enture. Eecause o tis lserrelie)ed te Carriedo #ro#ert$ o te encum(rance"ic e ad #laced u#on it and re+uested te7idelit$ and Suret$ Com#an$ to allo" im tosu(stitute anoter #ro#ert$ or it. *o"e)er terelease o te old mortgage and te recording o tene" "ere ne)er registered (ecause in Se#tem(er1L2, "en =$ons returned to !anila, e allo"ed temortgage to remain on te Carriedo #ro#ert$. Eut in

Januar$ 1L21, lser "as a(le to #a$ te noteeecuted ($ im to D$ Siolong "ic ena(led terelease o te Carriedo Pro#ert$.

Iss$e 35 =$ons, as al o"ner o te Carriedo#ro#ert$, in)oluntaril$ (ecame te o"ner or a coH#artner o an undi)ided interest in te San Juanstate, "ic "as ac+uired #artl$ ($ te mone$o(tained troug an encum(rance #laced on teCarriedo #ro#ert$. 5o.

He'! Dnder our la", a trust does not necessaril$attac "it res#ect to #ro#ert$ ac+uired ($ a #erson"o uses mone$ (elonging to anoter. 8n te case at(ar, tere "as clearl$ no general relation o#artnersi# (et"een =$ons and lser and te mosttat can (e said is tat te$ ad (een coH#artici#antsin )arious transactions in)ol)ing real estate. 8t isclear te lser, in (u$ing te San Juan state, "asnot acting or an$ #artnersi# com#osed or imseland =$ons, es#eciall$ tat te latter e#ressl$communicated is desire not to #artici#ate in tis)enture. =astl$, it sould (e noted tat no mone$(elonging to =$ons or an$ #artnersi# com#osed ($

=$ons and lser "as in act used ($ te latter in te#urcase o te San Juan state.

FERNANDE3 VS. DE LA ROSA

Facts /n te #art o #laintif 7ernande@, e claimstat e entered into a )er(al agreement "itdeendant ;e la -osa to orm a #artnersi# or te#urcase o cascoes "it te underta>ing tat tedeendant "ill (u$ te cascoes and tat eac #artner"ill urnis suc amount as e could, "ile te #ro


17/28

PARTNERSHIP Digests Atty. Cochingyan#laintif is un"illing to acce#t. #artnersi#tereore eisted (et"een te t"o and cascoes 5o.1%1% and 2BL are #artnersi# #ro#erties.

=OODHOUSE VS. HALILI

Facts ;eendant *alili inormed 3oodouse,#laintif, o is desire to in)est al a million dollars in

te (ottling and distri(ution o !ission Sot ;rin>s.3oodouse ten rela$ed tis message to !ission ;r$Cor#oration o =os ngeles, DS. !ission ;r$Cor#oration ten ga)e #laintif a tirt$ da$ o#tion oneclusi)e (ottling and distri(ution rigts in tePili##ines i(it J.

Tereater, #laintif and deendant enteredinto a "ritten agreement "it te f. #ertinent#ro)isions: 1 te$ sall organi@e a #artnersi# orte (ottling and distri(uting o !ission sot drin>s,"it #laintif, 3oodouse, as industrial #artner ormanager, and deendant, *alili, as ca#italist'2deendant "as to decide matters o general #olic$regarding te (usiness, "ile #laintif "as to attendte o#eration and de)elo#ment o te (ottling #lant'

#laintif "as to secure !ission sot drin>s ranciseor and in (eal o te #ro#osed #artnersi#' and 4#laintif "as to recei)e #ercent o te net #ro


18/28

PARTNERSHIP Digests Atty. Cochingyanagainst ! or te reco)er$ o #ro#erties andaccounting o te #artnersi# and damages.

CFI te #artnersi# o ! and - is ater P retired isone o de acto and at "ill' te saring o #ro "ic e sould0)e recei)ed (ut"as not #aid to im and must (e considered as iscontri(ution.

ISSUE "at is te nature o te #artnersi# andlegal relationsi# o !H- ater P retired rom tesecond #artnersi#O !a$ ! unilaterall$ dissol)e te#artnersi#O

SC Tere "as no intention to dissol)e te


19/28

PARTNERSHIP Digests Atty. Cochingyan s#ouses. Tis document alone #ro)es !0smisa##ro#riation o teir P*P21>.

SO ;ismissed a##eal. s#ouses ailed to so"suAcient #roo tat ! deli(eratel$ decei)ed tem inte anticresis transaction. Te document alone inte name o te ! s#ouses ailed to con)ince te S/Jtat tere "as deceit o alse re#resentation on te#art o ! to induce te s#ouses to #art "it teirmone$. Z #artnersi# trul$ eisted and it is clear

rom te act tat te$ contri(uted mone$ to acommon und and di)ided te #ro


20/28

PARTNERSHIP Digests Atty. CochingyanEor!a*eCo, 7rancisco and !odesto Cer)antes and!aglana ga)e some unds used in te #urcase oraircrats and s#are #arts as contri(ution to ne"cor#oration #ro#osed ($ =im to e#and is airline(usiness. Te$ eecuted 2 indemnit$ agreementssti#ulating tat te indemnitors #rinci#all$ agree and(ind temsel)es solidaril$ to indemni$, old andsa)e Pioneer rom damages, losses, costs, taes,#enalties, etc. "ic Pioneer ma$ incur rom(ecoming suret$. =im, acting under S=, eecuted

in a)or o #ioneer a deed o cattel mortgage assecurit$, sti#ulating tat =im "as to transer andcon)e$ to te suret$ te 2 aircrats. =im deaulted oninstallment #a$ments and J; as>ed Pioneer to #a$,"ic Pioneer did in te amount o P2LB>. Pioneer


21/28

PARTNERSHIP Digests Atty. CochingyanCA)POS RUEDA & CO. VS. PACIFIC

CO))ERCIAL CO. ET. AL.

Facts Tis case in)ol)es te a##lication ($ te#etitioner or a judicial decree adjudging itsel insol)ent. Te limited #artnersi# o Cam#os -ueda& Co. "as, and is, inde(ted to Paciing Cor#oration in )arious sums amounting tonot less tan P#1., #a$a(le in te Pili##ines,

"ic "ere not #aid more tan tirt$ da$s #rior tote date o teir ru#tc$, suc as tat o ailing or moretan da$s to #a$ de(ts amounting toPP1. or more, it ma$ (e adjudged insol)enton te #etition o tree o its creditors altoug itsmem(ers ma$ not (e insol)ent. Dnder our8nsol)enc$ =a", one o te acts o (an>ru#tc$ u#on"ic an adjudication o in)oluntar$ insol)enc$ is#redicated is te ailure o a #artnersi# to #a$ itso(ligations "it tree creditors or a #eriod o moretan da$s.

/n te contrar$, some courts o te Dnited Statesa)e eld tat a #artnersi# ma$ not (e adjudgedinsol)ent in an in)oluntar$ insol)enc$ #roceedingunless all o its mem(ers are insol)ent, "ile otersa)e maintained a contrar$ )ie". 5e)erteless, itmust (e (orne in mind tat under merican commonla", #artnersi#s a)e no juridical #ersonalit$inde#endent rom tat o its mem(ers.

Tereore, it a)ing (een #ro)en tat te #artnersi#Cam#os -ueda & Co. ailed or more tan da$s to#a$ its o(ligations to te erein res#ondents, te#artnersi# a)e te rigt to a judicial decreedeclaring te in)oluntar$ insol)enc$ o said#artnersi#.

AGUILA( R. VS. CA

Facts Te #etitioner erein is te manager o .C.guila & Sons, Co., a #artnersi# engaged in lendingacti)ities, "ile te #ri)ate res#ondent and er lateus(and "ere te registered o"ners o a ouse andlot, co)ered ($ a transer certi


22/28

PARTNERSHIP Digests Atty. Cochingyan8n tis case, te #ri)ate res#ondent as not so"ntat .C. guila & Sons, Co., as a se#arate juridicalentit$, is (eing used or raudulent, unair or illegal#ur#oses. !oreo)er, te title to te su(ject #ro#ert$is in te name o .C. guila & Sons, Co. and te!/ "as eecuted (et"een te #ri)ate res#ondent,"it te consent o er us(and, and .C. guila &Sons, Co., re#resented ($ te #etitioner. *ence, it iste #artnersi#, not its oAcers or agents, "icsould (e im#leaded in an$ litigation in)ol)ing

#ro#ert$ registered in its name.

3e cannot understand "$ (ot te -TC and te Csideste##ed tis issue "en it "as s+uarel$ raised(eore tem ($ te #etitioner. Te court0s conclusionis tat te #etitioner is not te real #art$ in interestagainst "om tis action sould (e #rosecuted. 8t isunnecessar$ to discuss te oter issues raised ($im in is a##eal.

Unite! States 5s. C'a#in

Facts Pedro =arin ad an agreement to orm a#artnersi# and te di)ide te #ro


23/28

PARTNERSHIP Digests Atty. Cochingyan#etitioners did not #ersonall$ old its e+uit$ orassets. 9Te #artnersi# as a juridical #ersonalit$se#arate and distinct rom tat o eac o te#artners.0 Since te ca#ital "as contri(uted to te#artnersi#, not te #etitioners, it is te #artnersi#tat must reund te e+uit$ o te retiring #artners.

nd since it is te #artnersi#, as a se#arateand distinct entit$, tat must reund te sares o te#artners, the amount to be refunded is necessarily

limited to its total resources. In other words, it canonly pay out what it has which consists of all itsassets. %owe"er, before the partners can be paidtheir shares, the creditors of the partnership must rst be compensated. &fter all the creditors ha"ebeen paid, whate"er is left of the partnership assetsbecomes a"ailable for the payment of the partners' shares.

C0s com#utation o te amount to (ereunded to res#ondents as teir sare "aserroneous as te eact amount o reund e+ui)alentto res#ondents0 sare in te #artnersi# cannot (edetermined until all te #artnersi# assets "ill a)e(een li+uidated, sold and con)erted to cas, and all#artnersi# creditors, i an$, #aid. 5o li+uidation o assets is made.

EVANGELISTA & CO. VS. A*AD SANTOS

Facts co H #artnersi# "as ormed under tename o 9)angelista & Co.0 8ts articles o coH#artnersi# "as later on amended to include strella(ad Santos a judge in a Cit$ Court in !anila as anindustrial #artner. Se su(se+uentl$


24/28

PARTNERSHIP Digests Atty. Cochingyaneecuted ($ te #artnersi# and Tan Sin n, "ere($te entire 4L lots "ere mortgaged in a)or o teEanco *i#otecario de 7ili#inas as successor to =aDr(ana. 3en Tan Sin n died, is "ie ong CiaPin "as a##ointed administrati o te intestateestate o er deceased us(and. -e#eated demandsor #a$ment "ere made ($ Eanco *i#otecario on te#artnersi# and on Tan Sin n "ic "as initiall$ #aid($ Futi)o and Co. and Sing Fee Cuan and Co. at tere+uest o Futi)o and Co. Te mortgage "as

e)entuall$ cancelled. 5o" Futi)o and Sing Fee CuanCom#an$ s "ortP1,B,. 7or te sare o larilla, 8dos issued our#ostHdated cec>s o "ic onl$ tree out o ourcec>s "ere encased. Tis im#elled larilla to s a)e (een sold. Tis "asreuted ($ larilla and su(se+uentl$ 8dos "ascon)icted ($ te trial court o te ofense carged.

Te C aArmed te decision o te trial court.

8ssue: 35 8dos )iolated EP 22O 5o

*eld: /ne o te elements o te ofense #enali@edunder EP 22 is Mte ma>ing, dra"ing and issuance oan$ cec> to a##l$ or an$ account or or )alue.N 8ntis case 8dos so"ed enoug e)idence tat tecec> "as to (e unded rom recei)a(les to (ecollected and goods to (e sold ($ te #artnersi#.7irst, onl$ one o te ours cec> "ere not encased

and second, e)en larilla imsel admitted tat tere"as no consideration or te issuance o te cec>.*ence te cec> in +uestion "as not issued or an$de(t o or an$ account due and #a$a(le ($ te#etitioner.

!oreo)er, 8dos and larilla "ere still in teM"inding u#N o te afairs o te #artnersi# en tecec> "as issued as e)idenced ($ te act tat te$still ad to sell te goods on and and collect terecei)a(les rom de(tors. s #ro)ided ($ te Ci)ilCode: "indingHu# is te #rocess o settling (usinessafairs ater dissolution, i.e. collecting o assets#re)iousl$ demanda(le' termination is te #oint intime ater all te #artnersi# afairs a)e (een"ound u#. Tus, since tat #artnersi# as not (eenterminated, te #etitioner and #ri)ate com#lainantremained as coH#artners. Te cec> "as tus issued($ te #etitioner to com#lainant as "ould a #artnerto anoter and not as #a$ment rom a de(tor to acreditor. 8dos did not )iolate EP 22.

VILLAREAL VS. RA)IRE3

7acts:

8n 1LB4, Iillareal, Carmelito Jose and Jesus Jose ormed a #artnersi# "it a ca#ital o P%,



25/28

PARTNERSHIP Digests Atty. Cochingyanor te o#eration o a restaurant and catering(usiness. -es#ondent -amire@ joined as a #artner inte (usiness "it te ca#ital contri(ution oP2%,. 8n 1LB, Jesus Jose "itdre" rom te#artnersi# and "itin te same time, Iillareal andCarmelito Jose, #etitioners closed te (usiness"itout #rior >no"ledge o res#ondents.

8n !arc 1LB, res#ondents "rote a letter to#etitioners stating tat te$ "ere no longer

interested in continuing te #artnersi# and tatte$ "ere acce#ting te latter0s ofer to return teirca#ital contri(ution. Tis "as let uneeded ($ te#etitioners, and ($ reason o "ic res#ondents iles, raneta andCo"#er. Te res#ondents in tis case


26/28

PARTNERSHIP Digests Atty. Cochingyante cattel mortgage declared null and )oid in raudo creditors. ;eendant !. Saldajeno claims tat allte #laintifs sa)e or /##an are creditors o Gari(a$and Tu(ung(anua and not o te deunct #artnersi#and tat said creditors ad >no"ledge and noticetat te ormer #artnersi# ad (een dissol)ed.

Te trial court ruled in a)or o te #laintifs tus, teerein deendants a##ealed. Te court ruled tattere "as no C! o)er te #ro#erties as suc "ere

o"ned ($ te #artnersi# and tat te #laintifs a)ea #reerred rigt o)er it as against Saldejano. ssuc, te latter must #a$ te #laintifs te res#ecti)eamounts or "ic te #artnersi# is inde(ted totem. Gari(a$ and Tu(ung(anua are also lia(le to#a$ to te #laintifs "ate)er amount tat te$ ma$not collect rom Saldajeno. Te deendants a##ealedto te C (ut te latter transerred te records o tecase to te SC.

SC Te remaining #artners did not terminate te(usiness o te #artnersi#. 8t is e#ressl$ sti#ulatedin te memorandum agreement tat te remaining#artners ad constituted temsel)es as te#artnersi# entit$, te M8sa(ella Sa"millN. Tere "asno li+uidation o te assets o te #artnersi#. Teremaining #artners continued doing (usiness o te#artnersi# in te name o M8sa(ella Sa"millN. Te$used te #ro#erties o te #artnersi#. Te#ro#erties mortgaged to !. Saldajeno ($ teremaining #artners (elonged to te #artnersi#. 8tdoes not a##ear tat te "itdra"al o !. Saldajeno"as #u(lised in te ne"s#a#ers. Te a##ellees andte #u(lic in general ad a rigt to e#ect tat"ate)er credit te$ etended to te remaining#artners doing (usiness in te name o M8sa(elasa"millN could (e enorced against te #ro#erties osaid #artnersi#. Te judicial oreclosure eecuted ina)or o Saldajeno did not relie)e er rom lia(ilit$ tote creditors o te #artnersi#. Tecnicall$ s#ea>ingte #artnersi# "as dissol)ed ($ te "itdra"al oSaldajeno (ut not terminated and it continued doing(usiness troug te t"o remaining #artners.

Te #laintifs "ere #rejudiced in teir rigts ($ teeecution o te cattel mortgage o)er te#ro#erties o te #artnersi# in a)or o Saldajeno ($te remaining #artners and te$ ad a rigt to ing in te (usiness. Fu, o"e)er, "as inormed($ Co tat e ad (ougt te (usiness rom teoriginal #artners and tat it "as u# to im to decide"eter or not e "as res#onsi(le or te o(ligationso te old #artnersi# including Fu0s salar$. Fu "as nolonger allo"ed to "or> or te (usiness and issalar$ remained un#aid.

Fu "ages. Te 5=-C re)ersed te decision,ruling tat te ne" #artnersi# ad not retained Fu inis original #osition and tere "as no la" re+uiringte ne" #artnersi# to a(sor( te em#lo$ees o teold #artnersi#. Te claim or un#aid "ages must (easserted against te old #artners (ut te$ a)e not(een ser)ed "it summons.

Iss$es 3eter te old #artnersi# ad (eenetinguised and re#laced ($ a ne" #artnersi#. 8 ane" #artnersi# "as created could Fu assert isrigts under is em#lo$ment contract as against itO

SC Te ac+uisition ($ te ne" #artners o B2X ote #artnersi# interest "as enoug to constitute ane" #artnersi#. *o"e)er, dissolution does notautomaticall$ result in te termination o te legal#ersonalit$ o te old #artnersi#. Te legal#ersonalit$ o te e#iring #artnersi# #ersists orte limited #ur#ose o "inding u# and closing o teafairs o te #artnersi#. Te ne" #artnersi#sim#l$ too> o)er te (usiness enter#rise o"ned ($te #receding #artnersi# and continued using teold name "itout "inding u# te (usiness afairs ote latter, #a$ing of its de(ts, li+uidating anddistri(uting its assets and te reHassem(ling teassets and o#ening a ne" (usiness enter#rise.

Tereore, not onl$ te retiring #artners (ut also tene" #artnersi# itsel "ic continued te (usiness

o te old, dissol)ed one are lia(le or te de(ts ote #receding #artnersi#. Te creditors o te old#artnersi# are also te creditors o te ne". Fu isentitled to enorce is claim or un#aid salaries, as"ell as oter claims relating to is em#lo$ment "itte #re)ious #artnersi#, against te ne" one.

Te nonHretention o Fu did not constitute unla"ul orunjust termination as te ne" #artnersi# is entitledto ire ne" managers. Te ne" #artnersi# ad Coas its o"n ne" manager and te (asis or Fu0stermination "as redundanc$.

Fu is entitled to is un#aid "ages and se#aration #a$.



27/28

PARTNERSHIP Digests Atty. Cochingyan

A)ES V. DO=NING 6N.4. S$##. Cit.7

TAJEN FRO) CLV *LOG autista quoted fromthe )ew *ork decision in &mes ". +owning, rad.().*. -urr. Cit.! /,012 to describe the origin andde"elopment of limited partnerships, thus 33

Te s$stem o limited #artnersi#, "ic "asintroduced ($ statute into tis state, andsu(se+uentl$ )er$ generall$ ado#ted in man$ oterstates o te Dnion, "as (orro"ed rom te 7rencCode. ent. 6' Code de Commerce, 12, 2, 24.Dnder te name o la societe en commandite, it aseisted in 7rance rom most autentic commercialrecords, and in te earl$ mercantile regulations o!aseilles and !ont#elier. 8n te )ulgar latinit$ o temiddle ages it "as st$led commanda, and in 8tal$accomenda. 8n te states o Pisa and 7lorence, it isrecogni@ed so ar (ac> as te $ear 1166' also in teordinance o =ouiseHle *utin, o 11%' te statutes o!arseilles, 12%' o Gene)a, o 1%BB. 8n te middleages it "as one o te most re+uent com(inations o trade, and "as te (asis o te acti)e and "idel$etended commerce o te o#ulent maritime cities o 8tal$. 8t contri(uted largel$ to te su##ort o te great

and #ros#erous trade carried on along te sores ote !editerranean, "as >no"n in =aguedoc,Pro)ence, and =om(ard$, entered into most o teindustrial occu#ations and #ursuits o te age, ande)en tra)eled under te #rotection o te arms o teCrusaders to te cit$ o Jerusalem. t a #eriod "enca#ital "as in te ands o no(les and clerg$, "o,rom #ride o caste, or cannonical regulations, couldnot engage directl$ in trade, it aforded te means o secretl$ em(ar>ing in commercial enter#rises, andrea#ing te #roing a dissolution,and turning te during teeistence o te #artnersi#N. 8n te instant case, allo te contri(utions "ere


28/28

PARTNERSHIP Digests Atty. Cochingyan8n tis case te limited #artnersi# is not a mere(usiness conduit o te #artnerHs#ouses' it "asorgani@ed or legitimate (usiness #ur#oses, Tecange in its mem(ersi# (rougt a(out ($ temarriage is not a ground or "itdra"ing te#artnersi# rom co)erage under ̀ 24 o te ta codere+uiring it to #a$ income ta. 3at is taa(le is teincome o (ot s#ouses in teir indi)idual ca#acities.

O CHUNG CANG 5s. PACIFIC CO))ERCIAL Co.

Facts 8n an insol)enc$ #roceedings o #etitionerHesta(lisment, MSociedad !ercantil, Tec> Seing &Co., =td.N, creditors, Paci to a)ail temsel)es o te #rotection ola"s #ermitting te creation o limited #artnersi#smust te so" a su(stantiall$ ull com#liance "it

suc la"s. 8t must (e noted tat all te re+uirementso te Code a)e (een met " te sole ece#tion otat relating to te com#osition o te

partnership and agency digests compilation

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